by The Soy Oil and Palm Oil Market is estimated to be valued at US$ 109724.12 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Soy oil and palm oil are widely used in various food applications as cooking oil and in baked and fried food products. They are also used as a feedstock in biodiesel production due to their price competitiveness over other oilseeds. Soy oil contain phytonutrients which helps in controlling cholesterol level, reducing inflammation and risk of certain cancers. Palm oil is a rich source of vitamins A and E along with various antioxidants beneficial for heart health.
Market Dynamics:
One of the key drivers for the market growth is increasing demand for vegetable oils in food industry. Soy oil and palm oil are widely used as cooking oil in households, restaurants and baked goods industry due to their long shelf life, high smoke point and neutral taste. According to Food and Agriculture Organization (FAO), the global production of vegetable oils reached 208 million tons in 2020 with soybean oil and palm oil accounting for over 50% share of the total production.
The second driver is growing biodiesel industry. Soy oil and palm oil are one of the commonly used feedstock for biodiesel production due to their high yield per acre. According to International Renewable Energy Agency (IRENA), global production of biodiesel reached around 27 billion liters in 2020 driven by policy measures supporting renewable fuels. The blended biodiesel demand boosts the overall consumption of vegetable oils globally.
Segment Analysis
The global soy oil and palm oil market can be segmented into soy oil and palm oil. Soy oil is dominating the market currently with around 55% share due to its increasing demand globally for use in food, cosmetics and industrial applications. Soy oil is preferred for its nutritional properties and versatility.
PEST Analysis
Political: Supportive policies by governments worldwide for cultivation and export of oil palm and soybean is boosting market growth. However, environmental policies can impact production.
Economic: Emerging economies witnessing high economic growth are major importers, driving foreign investments and opportunities. Fluctuating agricultural commodity prices present challenges.
Social: Rising health awareness is increasing preference for edible oils with nutritional benefits. However, issues relating to deforestation can impact demand.
Technological: Advanced farming practices, mechanization, genetic advancements are improving yields and quality. Innovation in extraction methods is enhancing efficiency.
Key Takeaways
The Global Soy Oil and Palm Oil Market Size is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing demand for cooking oil globally. The market size for 2023 is estimated at US$ 109724.12 Mn.
The Asia Pacific region currently dominates the market with over 60% share led by Indonesia, Malaysia and India being major producers and consumers. The region is projected to continue its dominance owing to large production bases and growing consumption.
North America and Europe are other major markets driven by burgeoning food processing and personal care industries. Strong economies and health-conscious demographics support market growth.
Key players operating in the soy oil and palm oil market are Cargill, Inc., PT Astra Agro Lestari Tbk, Wilmar International Ltd, Malaysian Soy oil & palm oil Council (MPOC), Carotino Sdn Bhd, Yee Lee Corporation Bhd, IOI Corporation Berhad, Archer Daniels Midland Company, Dow DuPont Inc., and Guangxi Long’an Ruifeng Industrial & Trading Co., Ltd.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
